Regional Mountain Conference

This paper examines participatory rural development and livelihood transformation in mountainous regions of Georgia, focusing on the role of Local Action Groups (LAGs), municipal participatory mechanisms, and tourism-based economic diversification in Khulo Municipality. Mountain regions in Georgia face persistent challenges such as depopulation, limited infrastructure, economic vulnerability, and weak institutional capacity. In response, participatory rural development programs supported by national and international initiatives have aimed to diversify local economies and strengthen community participation in development processes.

The study is based on qualitative research conducted in Khulo Municipality, including semi-structured interviews with rural households participating in economic development programs funded by local and international initiatives. The research explores how participatory governance mechanisms influence livelihood transformation, particularly the shift from subsistence agriculture toward diversified income sources such as tourism services, small entrepreneurship, and commercial farming.

The findings show that participatory structures such as Local Action Groups and municipal initiatives play an important role in information dissemination, capacity building, and access to grants, which support the development of tourism and other local economic activities. However, the research also identifies significant challenges, including sectoral bias in funding programs, limited infrastructure, geographic accessibility issues, digital divide, and low trust in local governance institutions. These factors limit the effectiveness of participatory governance and rural development programs.

The paper argues that successful rural development in mountainous regions requires stronger institutional capacity, improved infrastructure, and more inclusive participatory mechanisms. Tourism development, when combined with participatory governance, can become an important driver of livelihood transformation and regional resilience in mountain areas.